The home loan process
There are a number of steps to obtaining your new home loan. Your broker with assist you with each and every step making the whole process smooth and effortless.
1. Information gathering
We need to obtain certain information about your current financial situation in order to help you select the right home loan for your needs. In addition to providing information about your financial situation, copies of a number of documents are required (the originals of some, such as your ID will need to be produced to your broker for verification). Click here to obtain the full list of information and documents that ordinarily would be required. A credit check will also be carried out to satisfy the lender of your creditworthiness.
2. Lender selection
Once all your information has been pprovided, your broker can work out which loans are suitable for your needs and wants. A short list is provided with the most suitable loans. You select the lender and your inforamtion is then loaded onto the lender portal and the lenders application forms are printed for your signature and submission.
3. Submission to lender
Once the lender application form is signed, it can be submitted, along with supporting documents such as your payslips, ID and other documents for assessment by their credit team.
4. Conditional Approval
After the lender's credit assessor is satisfied that the application meets their criteria, conditional approval is granted. If the valuation hasn't already been ordered (some lenders allow valuations to be ordered at the time of application) the lender will arrange for a valuation to be conducted. This may take the form of one of three types of valuation. Full valuation - where the valuer will require access to the property, Short form - where the valuer just inspects the exterior of the property and lastly, Desktop - this is where the valuer relies on information that is keep on data bases such as RP Data.
5. Formal (or final) approval
Once any outstanding conditions are met and the valuation has been returned and is satisfactory to the lender, formal (or final) approval will be issued. This is normally the time when any remaining "cooling off" period can be waived and if contracts have not been exchanged, they can be at this point.
6. Loan offer documents sent to borrowers
The next step, the lender or their lawyers will sent out the formal loan offer documents for you to sign and return. These are the legally binding documents in relation to your new home loan.
When the lender and your solicitor are ready settlement of the tranaction occurs and you will then own the property and your get the keys to your new home. Settlement is typically scheduled for 42 days (6 weeks) after contracts have been exchanged. By agreement with the vendor, settlement can occur earlier of later than the standard 42 days. Every now and then there can be a last minute hitch and settlement will not take palce on the appointed date. You may incur penalty interest for each of the days settlement is delayed.